This brief report (30 pages) by Baker and McKenzie explores the 'risks and opportunities posed by climate change, the difficulty of accessing information to quantify climate change risk, the fiduciary obligations of superannuation fund trustees as they relate to climate change and sustainability, and conclusions as to what trustees should be doing in response to climate change. While this analysis is presented in the context of the Australian legal regime, it has far wider implications for international investors, asset owners and fund managers.'

The report themes the risks and opportunities into issues associated with technological impacts (mainly associated with GHG mitigation); physical impacts; and law and policy development.   The report uses the extreme events (namely the Queensland Floods) to show that the physical risks from extreme weather can be far reaching (e.g. impact on global coal prices).  Baker and McKenzie state that climate change is likely to affect the bottom line and return on investment of many Australia companies and they argue that it is only a matter of time before litigation emerges for failures associated with climate change.  For more information click here.

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